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NACFB warns brokers over fraudsters

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  • 09/09/2009
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The National Association of Commercial Finance Brokers (NAFCB) has told mortgage brokers to take care when introducing clients to a third party broker.

Adam Tyler, chief executive of the NACFB, said complaints have increased from clients of advisers who have been put in touch with ‘so-called commercial brokers’ to source commercial mortgage deals.

He added: “These commercial brokers promise much, charge heavily and deliver nothing. The adviser, who has introduced his clients in good faith, is left with demands for repayment of upfront fees and a damaged reputation.”

Tyler said fraudsters seemed plausible because they send emails to brokers offering terms unavailable anywhere else in the market.

He explained: “After the client has advanced several thousand pounds for valuations or appraisals, no funding is forthcoming. At the current time three cases have been forwarded to the police and Trading Standards for further action and many more are under investigation.”

The trade body has advised brokers to either to deal with an NACFB member, who operates under a Code of Practice, or with a broker with whom they have a good relationship with.

 

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